Group Project Checkpoint 1

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Management

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Feb 20, 2024

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MGMT 2170 Entrepreneurial Management Group Project Checkpoint 1 Fall 2023 Company Name - Katch Team Members - Chris Halstad, Kayla Martello, Sydney Scales, Anthony Zihenni, Jack McConnell Company summary: What problems/needs does Katch solve? In 2022, 260 million packages were stolen amounting to $19.5 B. Just 6 years prior, only 11 million packages were reported stolen. According to a survey issued by the New York Post, 64.1% of people have had packages stolen from their homes. These numbers have only continued to increase during the pandemic and will continue to grow in the coming years as online shopping becomes more prevalent in our society. It follows that accompanying the rapid increase in E-commerce is an increase in package thefts. It is interesting to note that of all packages stolen, 53.9% of thefts were amazon packages; whereas FedEx and UPS package thefts consisted of 15.5% and 11% respectively of total thefts. Over half of these packages were valued at between $50 and $200. It is evident that package theft is a rapidly growing and invasive problem. Another problem faced by many customers who use online grocery shopping is the large time frame for which you have to be available to receive ordered goods. For instance, Instacart provides you with a two-hour window for which your order could be delivered. This inconvenience forces users to plan their day around a two-hour window. In a similar vein, online shoppers will plan their day around an incoming package to make sure they are home when it arrives. Large E-commerce companies, like Amazon and Walmart, are heavily investing into drone delivery as an alternative to cars. In order for these packages to be delivered safely and securely, each house needs to be equipped with the necessary infrastructure. Who experiences this problem, and when do they experience it? Note: This may include multiple individuals/organizations, such as both sellers and buyers on a platform. The delivery process is broken down into three different categories: the consumer, the deliverer, and the business. The primary target market is working suburban families. There are 130 million households in the US, 75 million of which are single-family homes (Not Multi-Dwelling Units). According to a Forbes survey, 50% -60% of households are actively concerned about having packages stolen from their homes. Given this, the total addressable market is approximately 42 million households

in the US. We would also target the older generation of online shoppers. Given that the pandemic was most dangerous for older demographics, there was a large increase in online shopping from this group. What is your product/service, and how will it work? Katch aims to solve three problems within the growing E-commerce industry: security of packages from theft, protection of packages from the environment, and ease of mind when online shopping. First, Katch is equipped with a one-way door to allow for the easy insertion of packages without the fear of the packages being removed. Similar to a crab trap, a delivery person is able to push a package down into the Katch box but will be unable to take anything out. In addition, there is a key padlocked door on the side of the Katch box to allow for the owner to take their packages out comfortably. Katch is also made of a strong synthetic plastic called polypropylene that can withstand the outside environment. Another way Katch protects delivered goods is by blending in with the aesthetics of the house. Katch is customizable in color to make sure it blends well with the landscape. Second, Katch serves to protect packages and especially delivered foods from the environment. Katch is insulated to keep warm and cold foods at their temperature. When ordering online groceries today, it is necessary to be present to receive the order; however, Katch allows for food to be delivered at any time. Third, Katch aims to provide each household with comfort and confidence knowing that their deliveries have arrived and are protected and secured. Katch has a relatively low-tech build; however, it is equipped with a sensor that notifies the household when something has been delivered. Finally, Katch acts as a platform for drone delivery to ensure safety and security. This infrastructure is both necessary for the consumer and the company. What is the current competition, and how is your product/service unique? List specific competitors if you know who they are. There are 4 primary groups of competitors for Katch. The first is Amazon Locker. Amazon locker is a publicly located lockbox that holds onto Amazon packages for the consumer until they are picked up. To compare Katch and Amazon Locker, Katch is placed at your house and can receive packages and orders from companies other than Amazon. The second competitor to Katch is high-end lockboxes that sit at your house and are located with a key like Essential Rectangle. Katch differentiates itself from products like Essential Rectangle by being easily usable by a delivery person and insulated. Katch’s unique one-way door and insulation are two differentiations that don’t exist on the market today. The third competitor to Katch is installable lockboxes that are

attached directly to your house like UCELLA. Katch is different in that it is able to hold a large amount of volume in comparison to products like UCELLA. Finally, there exist cheap metal lockboxes on the market that can be purchased from hardware stores; however, these aren’t customizable in color to fit the aesthetic of the house. How do you plan to make money? The primary source of income is the sale of Katch units. As of now, it’s projected that Katch will cost $60-70 to manufacture; however, the cost of production will decrease over time due to an increase in volume. Because the primary target market is the suburbs of big cities, we plan to price Katch at $150 as the average suburban household has a higher rate of income in comparison to the rest of the country. Another potential source of revenue would be a leasing program. Instead of selling the box outright to customers, we would lease Katch for a monthly recurring fee. Within this leasing program, we would be able to incentivize the long use of the product through discounts. For example, after 12 months of use, the monthly fee will decrease by $5. We would also consider approaching E-commerce companies, like Amazon, to partner with for the use of Katch. As we stated previously, 53.9% of all packages (210 million) stolen in 2021 were from Amazon. Given that over half of those packages were worth $50-$200 and assuming Amazon reimbursed or sent another product to the home, this would result in more than $5 billion dollars lost. Katch would act as a guarantee that packages were delivered and secured. What do you view as the biggest uncertainties? List at least three. 1. From a product development standpoint, building a MVP and figuring out how to manufacture are unknown. 2. If legislation will allow for large scale drone delivery usage in the US. 3. The best way to target suburban homes and focus advertising. Revenue - Different tiers of box R&D - Recycling the box, have

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